Mexico's Wine Imports Surge 26.5%

Mexico has recorded a significant increase in its wine imports during the first half of 2024, with a 26.5% rise in volume, reaching 39.3 million liters, while the total value grew more modestly by 4.2% to $155.6 million, according to data from Mexican customs authorities. This disparity between volume and value is due to a 17.6% reduction in the average price, which now stands at $3.96 per liter. These figures reflect a growth in volume that surpasses the previous record of 37.4 million liters set in 2022, indicating strong consumption in the country, although with a preference for lower-priced wines. In fact, the import value has remained close to the record $155.8 million also reached in the first half of 2022.

The uptick in imports over the past three years has been consistent, with sustained levels above 30 million liters each semester and a billing close to $155 million. This contrasts with the sharp decline seen in 2020 due to the COVID-19 pandemic. Starting in 2021 and 2022, Mexico experienced a remarkable recovery that almost doubled import figures in both volume and value. However, the post-pandemic growth was followed by a notable correction in 2023, affected by factors such as global economic uncertainty, inflation, and monetary austerity policies. This drop could also be attributed to an excess of stock accumulated at the end of the pandemic, which led to reduced purchases last year.

Purchases of non-sparkling bottled wine were the most relevant during the semester, accounting for approximately three-quarters of the total value and 72% of the imported volume. The growth of this category, with an increase of 6.5 million liters, is the main driver behind the overall increase of 8.2 million liters. The remaining growth is distributed between sparkling wine, which rose by one million liters, and bulk and Bag-in-Box (BiB) wines, which added 0.3 million liters each. In percentage terms, the category that grew the most was BiB wine, with a 47% rise, driven by Spanish products. This segment shows a differentiated behavior in a market that, in general, has opted for lower-priced products.

In terms of value, the additional $6.3 million in imports is largely due to the $15.7 million increase in non-sparkling bottled wines, offsetting declines in sparkling and bulk wines. France, with its high-priced sparkling wines, saw its revenue drop by almost $9 million, while Spanish bulk wines also lost $1 million. On the other hand, sales of BiB wines increased by $0.6 million, showing a rise in purchases of affordable products. These shifts explain why the growth in volume is greater than in value and how certain segments have benefited from the market's dynamics.

Chile was the standout performer of the semester, doubling its sales in volume from 6.4 million to 13 million liters. However, by selling at an average price of just $2 per liter, 19.1% less than in the previous period, its revenue growth was 62.5%, reaching $30 million. This has allowed Chile to position itself as the main wine supplier to Mexico by volume, surpassing Spain, which had a more modest growth of 2.4% in volume, reaching 11.9 million liters. In value terms, Spain continues to lead the market with $46.5 million, thanks to an average price of $3.91 per liter, well above the Chilean price.

Italy, for its part, has experienced notable volume growth, with a 29% increase to 8 million liters. With an average price of $3.96 per liter, slightly higher than the Spanish rate, Italy has reached $32 million in revenue, positioning itself above Chile. France, meanwhile, has been one of the hardest hit, with a 17% reduction in volume and a more than one-third drop in revenue, falling from $38 to $25 million. This decline is largely due to the decrease in sales of its high-priced sparkling wines. Argentina has faced a similar situation, with a 15.2% drop in volume and a 15.7% drop in value, resulting in a loss of half a million liters and $2 million in the Mexican market.

Other suppliers, such as Portugal and Australia, have shown significant growth in relative terms. Portugal, with virtually no sales in the first half of 2023, has managed to bill nearly $1 million, while Australia has doubled its sales volume to 173,000 liters, albeit at an average price that is half of what was recorded the previous year. These data suggest that the Mexican market continues to be attractive to a wide range of origins, although changes in price structure and a preference for more affordable products are impacting the competitiveness of some traditional producing countries.

In the aggregate for the 12 months up to June 2024, Mexico's wine imports stand at 79.9 million liters, with a value of $324 million and an average price of $4.06 per liter. Although these figures still show declines compared to the previous 12-month period, they reflect a recovery from the losses experienced in 2023 and consolidate Mexico as a market of growing interest for wine exporters, especially those who can adapt to the new price and quality demands of Mexican consumers.